BaltCap launches solar power plant in Latvia

A joint venture, PV Power Ltd, comprising BaltCap Infrastructure Fund, energy group AJ Power, and alternative investment fund manager AJP Capital, has invested EUR 4.6 million to inaugurate the largest solar power plant in the Latvian region of Kurzeme, located in the city of Brocēni. The total capacity of the solar park is 6.5 MW, which will generate more than 6000 MWh of green electricity per year. The electricity generated by the solar power plant will be used by SCHWENK Latvija, a leading building materials producer in Latvia, which has signed a long-term green energy supply contract at a fixed price and is the largest long-term green energy supply contract of its kind signed by a single company in Latvia.

By purchasing green electricity from the newly opened solar power station, SCHWENK Latvia is contributing to the achievement of climate goals and obtaining more predictable electricity costs in the long term. The electricity generated by the solar power plant will result in more than 1,600 tons of CO2 emissions being avoided and the company’s impact on the environment will be significantly reduced. The solar power plant covers a total area of more than 10 hectares and has 11 520 solar panels with a capacity of 6.5 MW.

Matīss Paegle, Partner at BaltCap Infrastructure Fund: “I am delighted that in less than 1.5 years since the inception of our joint venture aimed at advancing solar energy production, we are now inaugurating the first operational PV plant in Brocēni. Another four projects comprising 14.7MW are currently under construction in various cities across Latvia, all aimed at providing manufacturing companies with green energy at predictable long-term prices. Unlike numerous large-scale projects that are still in the planning, this one stands as a fully operational model that enables businesses to stabilize their electricity costs without the need for heavy investments in fixed assets, benefiting both enterprises and, indirectly, citizens who can enjoy more affordable and greener goods and services.”

Roberts Samtiņš, CEO of AJ Power: “Brocēni solar plant project is the largest developed by AJ Power up to now and serves an exemplary model of how companies can efficiently access renewable electricity for their production requirements. Prior to the start of construction, a contract was signed with SCHWENK Latvija for the purchase of green electricity. This demonstrates both confidence in the AJ Power team’s experience and a clear, sustainable vision for the company’s development. I am confident that more and more companies will follow SCHWENK Latvija’s lead.”

“The use of renewable energy is another step towards climate neutrality in cement production and our contribution to reducing the country’s overall CO2 footprint,” says Evita Goša, Member of the Board of SCHWENK Latvija, Director of Environment and Legal Affairs. “The Brocēni cement factory is already one of the most environmentally friendly in Europe and with ongoing investments we are moving towards climate change neutrality. This solar park will provide around 4.5% of our annual electricity consumption. Considering that the cement factory is one of the largest electricity consumers in Latvia, this represents a significant amount of electricity in MWh terms and is equivalent to the annual consumption of several thousand households.”

The total investment in the Brocēni solar power plant project is EUR 4.6 million, of which EUR 3.55 million is a loan from SEB Bank, EUR 850,000 from the BaltCap Infrastructure Fund and EUR 200,000 from the Solar Core Plus Fund invested by PV Power Ltd.

PV Power is a joint venture between two funds, Solar Core Plus and BaltCap, and the energy group AJ Power, established with the aim of developing solar energy production in Latvia. “Solar Core Plus is a fund established by the alternative investment fund manager AJP Capital. The fund was established in 2022, attracting capital from Latvian investors, with the aim of investing in the circular economy segment, including significant renewable energy generation projects.

About AJ Power group
AJ Power, the largest Latvian private energy group, was established in 2014. AJ Power offers integrated energy services: sales of electricity and natural gas, implementation of energy efficiency and solar panel projects, as well as a system for managing the Natural resources tax. With its energy and waste management solutions, AJ Power gives businesses an opportunity to join the circular economy. In 2020, the turnover of AJ Power group was EUR 70 million.

About AJP Capital
AJP Capital is an alternative investment fund manager established in 2021 and registered with the Financial and Capital Market Commission of Latvia (FCMC). AJP Capital involves investors into the circular economy by providing a versatile offer of investment opportunities. The investment funds managed by AJP Capital invest in circular economy projects of varying risk and scale. These investment projects include energy generation from renewable sources, infrastructure development and adjustment to the circular economy, energy efficiency, and transport.